Divestment
What is Divestment? Divestment is the sale of an existing business or an asset class that doesn’t perform or meet the expectations of the company or a country. Divestment is also referred to as divestiture. Reasons for Divestment Divestment is a difficult decision for a business. However, there are many reasons why...
Deregulation
What is Deregulation? Deregulation is the removal or reduction of government regulations in a specific industry. The goals are to allow industries to operate businesses more freely, make decisions efficiently, and remove corporate restrictions. Overall, the main objective is to remove barriers to competition so that a particular industry can compete in the international market...
Depositary Receipt
What is a Depositary Receipt? A depositary receipt is a negotiable instrument issued by a bank to represent shares in a foreign public company, which allows investors to trade in the global markets. Understanding Depositary Receipts Depositary receipts allow investors to invest in companies in foreign countries while trading in a local stock...
Demutualization
What is Demutualization? Demutualization refers to the process by which a mutual company converts into a public share company. A mutual company is an institution owned by its mutual owners who enjoy exclusive use of its productive assets. Essentially, the company is owned by its users. When a mutual company decides on a legal ownership...
Debt Financing
What is Debt Financing? Debt financing occurs when a company raises money by selling debt instruments, most commonly in the form of bank loans or bonds. Such a type of financing is often referred to as financial leverage. As a result of taking on additional debt, the company makes the promise to repay the loan...
